Release: PT Medco Energi International Tbk sign MoU with PD Wahana Rahardja

(Jakarta, July 13, 2005) - In compliance with BAPEPAM's Rule No. X.K.I. regarding Disclosure Made To Public Immediately, we, PT Medco Energi International Tbk. would like to inform you that on July 12,2005, the company through its wholly own subsidiary, PT. Medco Geothermal Indonesia, signed a Memorandum of Understanding with PD Wahana Rahardja, a company owned by local Government of Lampung Province.

The MOU was signed for the purpose of initiating a joint development of geothermal potentials in Lampung Province, particularly at Suoh and Sekincau fields located at West Lampung, and for the development of geothermal power plant at Lampung Province.

Medco Geothermal plans to carry out further study on the geothermal pontentials in Suoh and Sekincau areas. Based on the study, Medco Geothermal expects to develop the geothermal power plant gradually.

This MOU is the primary step for mutual benefit cooperation between the local Government of Lampung Province and the Company. Therefore, both parties expect that this MOU can be transformed into details agreement.

Entering into geothermal is one of the efforts for MedcoEnergi to enter into a renewable energy business so that the Company could sustain its business in the future depletion of hydrocarbon reserves. (end of release)